CANADA STOCKS-TSX closes higher as CP Rail, gold stocks climb

By John Tilak TORONTO, Jan 29 (Reuters) - Canada's main stock indexclimbed on Tuesday, lifted by Canadian Pacific Railway Ltd'sprofit outlook and a rally in gold shares, which rose with theprice of the precious metal as investors speculated on U.S. Fedactions. Canadian Pacific said its aggressive efficiency pushwould pay off in a 40 percent increase in earnings this year,sending its shares to an all-time high. The stock climbed 3.1percent to C$116 .22. Gold rose on short-covering and expected continuation ofloose U.S. monetary policies. The gains were, however, kept in check by a fall infinancials and a 3.4 percent decline in Research In Motion Ltd shares, triggered by investor caution ahead of theBlackBerry 10 launch on Wednesday. The market pullback follows a recent rally in the stock inthe run-up to the launch. "Tomorrow is the big day. But it will be sometime beforeit's discernible whether or not it is in fact the great successthey're hoping for," said Michael Sprung, president of SprungInvestment Management. "It's a coin toss. At the end of the day, no one can predictthe success of BB10. It's a speculative stock," he added. The Toronto Stock Exchange's S&P;/TSX composite index was up 14.65 points, or 0.11 percent, at 12,830.56.Seven of the 10 main sectors on the index advanced. While the Fed is not expected to change its stance afterdeciding only in December to loosen conditions further,investors are watching to see if changes in the membership ofthe policy-setting committee for 2013 could signal a shift inthe future. "The expectation is that little will change other thanprobably some comment with respect to the eventual exit (fromthe stimulus). Right now it will be a reaffirmation of the lowinterest rate policy," said John Ing, president of MaisonPlacements Canada. He said his expectation for the gold sector this year isquite bullish. "Gold has been pretty good refuge in order tomaintain, to hedge the depreciation in the value of currencies,"he said. The materials sector, which includes mining stocks, playedthe biggest role in leading the market higher, rising 0.7percent. The group was boosted by a 0.5 percent rise in goldprices. Goldcorp Inc rose 1.7 percent to C$36.11, and YamanaGold added 2.7 percent to C$16.65. CP Rail helped the industrials sector gain 0.9 percent.